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Home My WebLink AboutReso - CC - 086-1997RESOLUTION 86_97 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME AUTHORIZING EXECUTION OF FIRST AMENDMENT TO AGREEMENT BETWEEN THE CITY OF BURLINGAME AND GREAT WESTERN BANK FOR COMPENSATION SERVICES RESOLVED, by the City Council of the City of Burlingame: WHEREAS, Great Western Bank is one of the administrators of the City's deferred compensation program for its employees; and WHEREAS, Great Western Bank has associated FundSelect Advisers, Inc. and National Deferred Compensation Services to assist it providing those services; and WHEREAS, the proposed Amendment to the Administration Agreement is intended to better define those relationships and indicate how investment options will be reviewed, NOW, THEREFORE, IT IS ORDERED: 1. The Amendment attached hereto as Exhibit A is approved, and the City Manager is authorized to execute the Amendment for and on behalf of the City of Burlingame. 2. The City Clerk is directed to witness the Manager's signature on behalf of the City. Aao.G, A - 4, MAYOR I, JUDITH A. MALFATTI, City Clerk of the City of Burlingame, do hereby certify that the foregoing resolution was introduced at a regular meeting of the City Council held on the 3rd day of NOVEMBER 1997, and was adopted thereafter by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS HARRISON, JANNEY, KNIGHT, O'MAHONY, SPINELLI NONE Amendment to Administration Agreement THIS AMENDMENT to the Administration Agreement made and entered into on September 7, 1993, by and between the City of Burlingame, a municipal corporation, ("Agency" herein) and Great Western Bank, a Federal Savings Bank, (`Great Western" herein) is hereby amended as of , 1997, as follows: RECITALS WHEREAS, Agency desires to utilize Great Western in connection with the administration of the Plan; and WHEREAS, Great Western has contracted with National Deferred Compensation, Inc., ('NDC'), an Ohio Corporation, to provide administration and record keeping services for the Plan; and WHEREAS, Great Western has contracted with FundSelect® Advisers, Inc., ('FundSelect"), an Ohio Corporation and an affiliate of NDC, to provide enrollment, sales, and brokerage services under the Plan; and WHEREAS, Great Western has represented to the Agency that NDC and FundSelect® are fully qualified, licensed, and capable of performing these services; and WHEREAS, Great Western and Agency wish to make available some new investment options and recommend removal of others; and WHEREAS, Agency and Great Western wish to amend the Deferred Compensation Plan Administration Agreement, pursuant to Section 20 of said Agreement. NOW, THEREFORE, incorporating the foregoing recital herein, Agency and Great Western mutually agree to amend their Administration Agreement as follows: A. Exhibit A to such Agreement and all successor amendments concerning investment options are hereby deleted and replaced in their entirety by Amended Exhibit A the "FundSelect® Extended List", attached hereto and incorporated by reference as though fully set forth herein. B. Agency agrees that Great Western, through its agent FundSelect®, may propose additions to the investment options to the Plan no more often than quarterly. The Agency shall promptly determine whether to approve the additions, and such additions shall become effective when made an amendment to the Administration Agreement. ProposalBurling-10/97-jk C. FundSelect® may, on an annual basis and with Agency's written consent, recommend the removal of investment options listed on Exhibit A due to perceived poor or below market performance, in accordance with the following: FundSelect® will notify the Agency in writing: which option(s), if any, from Exhibit A, it recommends for removal from the list of available options, reasons for the recommendation, and which remaining option(s) is most similar in investment objective/style. 2. FundSelect® will notify all affected participants first with a newsletter article and then with a personal letter. These communications will: briefly outline the reasons the option(s) has been suggested to be removed, provide a recommended removal date for said option(s), and advise participants they must reallocate ongoing deferrals to another option. At any time prior to the recommended removal date, participants may reallocate their deferral elections and/or exchange balances to other options. This process can be accomplished either via the telephone, (through the IVR or by advising a Service Representative), or thought the completion and return of signed forms. Participants will be given every opportunity to get the information necessary to make an informed decision about the available investment options, including the delivery of fund prospectus(es) upon request. 3. FundSelect® will mail written confirmations on all ongoing deferral allocation changes initiated by this removal process in accordance with normal processing standards. D. Agency agrees that the effective date for offering the investment options listed on Exhibit A which have an "X" marked in the column entitled "FundSelect® Recommended Extended List" will be the first day of the month at least one month subsequent to the month this Amendment is executed. E. FundSelect® agrees to make available or continue to make available for investment those options, not contained on the FundSelect® Extended List, but in which participants have balances which can be maintained indefinitely. Deferrals may continue to discontinue options until March 1, 1998 (the phase out date) or until such earlier date when a change is made to either deferral amounts or allocations for any of these options. However, from and after the recommended removal date, no new contributions will be made to those options which are not contained on the "FundSelect® Extended List". Furthermore, those options which Proposal/Burling- 10/97 jk 2 are not contained on the "FundSelect® Extended List" shall be completely eliminated from the investment options at such time as those participants currently participating in those options remove all contributions. F. Based on Great Western's representations and assurances, Agency approves the contracting by Great Western with NDC and FundSelect® as described above. However, nothing contained in this Amendment is intended to change or modify the fundamental responsibility of Great Western to administer all aspects of the Plan as set forth in the Agreement nor in any way to obligate the Agency to notify, contract with, or otherwise involve itself with FundSelect® or NDC. Nothing contained in this Amendment shall be construed to constitute in any way an assignment of Great Western responsibilities or obligations to any other party, but only constitutes subcontracting of those responsibilities. Except as expressly amended by this Agreement, all other provisions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed, the day and year first -above written. "AGENCY" "GREAT WEST" City of Burlingame Great Western Bank M Title: Accepted by FundSelect® ProposaVBurling-10/97 jk II. FundSelect® "Core List" and "Extended List" of Investment Options Asset Class I Category Obiective/StIlle I Fund I Complied from 131.97 data CONE OPTIONSpecemmended lo% of 3 Yr 30 Largest Categoryflseu Funds Balanced X X List" Morningstar "500 Llef op le%of 3 Yr Catagary Regard Me— rl-fl Funds Fixed Income/Cash X FDIC Insured Liquid Savings Great Western Bank Liquid Savings X X x x X X FDIC Insured Certiflcatea of Oe Dalt Greet Western Bonk - 3 Year CD X FDIC Insured Certificates of Deposit Great Western Bank • 5 Year CD X Stable Value Stable Value FundSelecui9 Stehle Value Fund Bonds I X Intermediate Corp jHIgh Duality Vanguard Bond Index Total Band Market X X Domestic Hybrid Asset Allocation Income fund of America X X X Large Cep Value Asset Allocation Large Cep Stacks I X Large Cap/Blend Growth it Income Vanguard Institutional Index (56P 500) X X X X If you wish to add only the recommended "Extended List" identified in Green below, check here EXTENDED LIST JCheck the boxes below for individual selections. Momingsmrop "5U0 DsY lo% of 3 Yr 30 Largest Categoryflseu Funds Balanced X X x X x X x X Vanguard Wellington X X X x x X Dodge it Cox Balanced Large Cap Domestic Hybrid Balanced Founders Balanced X X Stocks Domagle Hybrid Balanced Vanguard Wellington X X Domestic Hybrid Balanced Dodge it Cox Balanced X Domestic Hybrid Balanced Fidelity Puritan X X Domestic Hybrid Asset Allocation Income fund of America X X X Large Cep Value Asset Allocation Oppenheimer Quest Opportunity A X X Large Cap Value Equity Income Putnam Equity Income A X X Large Cap Value Equity Income Fidelity Equity Income X X X Large Cap Value Growth It Income Kemper -Dreman High Return Equity A X X Large Cap Value Growth 6lncome Fidelity Growth It Income X X Large Cap Value Growth It Income Washington Mutual Investors X X X X Large Cap Value Growth h Income Vanguard Windsor II X X Large Cep Value Growth it Income American Century Income 6 Growth X X Large Cap Value Growth American Century Equity Growth X Large Cap gland Growth 6 Income Investment Company of America X X X Large Cap Blend Growth 6lncome Putnam Fund Far Growth It Income A X X Large Cap Blend Growth Fidelity Conhahmd X X X Large Cap Blend Growth Janus X X Large Cap Bland Growth Fidelity Magellan X X Large Cep Blend Growth TBowe Price Blue Chip Growth X X Largo Cap Growth Growth Growth Fund of America X X X Large Cap Growth Growth Distrust Appreciation X X Large Cap Crowth Growth Vanguard US growthX X Large Cep Growth Technology Franklin Dynalrech I Large Cap Growth Socially Conscious Dreyfus Third Century X Large Cap Growth A gressive Growth American Cantu -20th Century Ultra 11. X X M reverse aide Asset Class I Cateury I Obiective St le I Fund Compiled from 13197 data cwchinrn i ref International International Hybrid Multi -Asset Global Oppenheimer Global Inc It Gmwth A Stocks World Stock World Stock Jamas Warldwlde X X X World Slack World Stock Templeton World I World Stock World Stock New Perspective X X World Stock World Stock Templeton Growth I X X Small Value World Stock Franklin Mutual Discovery 1 X Foreign Stock Foreign Stock Templeton Foreign I X X X Foreign Stock Foreign Stock Ivy international A X X Foreltin Smck Foreign Stock Founder PasaPort X X Foreign Stack Foreign Stock EuroPacific Growth X X X X Olv Emerging Mitts I Div Emerging Mitts ITemplation Developing Markets I I X X Employer Name: _ Employer # Accepted By Employer Accepted By FundSelect® Gate: Date: ns:.iam rr�aamr